With your car loan at 1.9%, you can earn more than that in an ING savings account. So no, I would not pay the car off early. You already paid more than market value for the car to get that rate. So use it. Your emergency account is the money market. You are not getting a decent rate. $28000 could be in an ING account, or a chunk of it in a CD. You CAN break the CD early if the money is needed for unexpected medical bills; with a pregnant wife this is a possibility. You didn't mention the house as a debt, but no, assuming the mortgage is at a higher rate than 1.9%, you do better to pay extra on the house and take your five years to pay off the car at that very low rate. Best wishes, Chris